Page 8 - Insolvency And Bankruptcy Code

Regulatory changes to provide necessary push to surety bonds biz: Experts

Regulatory changes like amendment in the Insolvency & Bankruptcy Code and standardization of bond wordings would give a fillip to newly introduced product underwritten by general insurance companies, called surety bonds, experts said. This product launched in 2022 is going to play a crucial role in supporting India's infrastructure development and heavily reduce reliance on bank guarantees for project finance. As a result, banks can focus on other productive sectors for lending. Bajaj Allianz General Insurance, which is the pioneer of the product said that it has been able to add more than 50 beneficiaries who have started accepting surety bonds. According to Bajaj Allianz General Insurance Chief Technical Officer TA Ramalingam, possible amendments in the legal framework are crucial in providing insurance companies with equal legal recourse as banks under the Insolvency and Bankruptcy Code (IBC). This parity would provide a level playing field, encourage fair competition and ...

Supreme Court sets aside NCLAT order halting Byju's insolvency proceedings

With this, Byju Raveendran and his brother Riju Raveendran have again lost control over Think and Learn Pvt Ltd or Byju's

Byju's in trouble again as SC scraps NCLAT ruling on insolvency proceedings

A bench led by Chief Justice DY Chandrachud revoked the NCLAT's approval of Byju's settlement of Rs 158.9 cr in outstanding dues to the BCCI

When will India celebrate failure? Insolvency key to small business growth

Entrepreneurs, fearful of social judgement, often hesitate to seek help, allowing their struggles to fester until it is too late

NCLAT closes proceedings against JHL as Max Healthcare settles claims

The National Company Law Appellate Tribunal (NCLAT) has closed the insolvency proceedings against Jaypee Healthcare after the financial creditors' dues were settled by Max Healthcare. The appellate tribunal's direction to close the Corporate Insolvency Resolution Process (CIRP) against Jaypee Healthcare Ltd (JHL) came after the financial creditor submitted that they had received the amount of Rs 1,035.29 crore as part of the settlement and no claim had survived. "In view of the fact that the entire claim has now been satisfied and the amount deposited has been disbursed, we see no reason to continue the CIRP any further," said the NCLAT order passed on Thursday. CIRP against JHL was initiated by the Allahabad bench of the National Company Law Tribunal (NCLT) on June 14 this year, over a petition filed by its lead creditor JC Flowers Asset Reconstruction Ltd. This was challenged by the Manoj Gaur-led parent group firm Jaypee Infratech Ltd (JAL) before the appellate tribunal ...

SC revives Adani's Rs 27K cr insolvency resolution for KSK Mahanadi project

The lenders have made claims of Rs 29,330 crore against KSK Mahanadi, which was sent for debt resolution in 2020 after the firm defaulted on its debt payments

There is a need for second-generation IBC reforms, says Amitabh Kant

India's G20 Sherpa called for opening doors to non-sovereign or private players to deploy technology for improved court management

Future Lifestyle lenders approve bid from Space Mantra & Guptas' consortium

The lenders of Future Lifestyle Fashions Ltd, going through insolvency resolution, have approved the bid from a consortium of Space Mantra and Sandeep Gupta & Shalini Gupta. The Committee of Creditors (CoC) of Future Lifestyle Fashions Ltd (FLFL) has voted in favour of the resolution plan submitted by the consortium, according to a regulatory filing from the company. "We hereby inform and place on record that the resolution plan submitted by consortium of Space Mantra Pvt Ltd and Sandeep Gupta & Shalini Gupta is approved by the Committee of Creditors of FLFL on September 27, 2024," it said. The company has not shared the details of the plan approved by the lenders. It also informed that the Corporate Insolvency Resolution Process (CIRP) period for FLFL ended on August 26, 2024. The Resolution Professional (RP) of the company filed an application before the National Company Law Tribunal on August 24, 2024, seeking extension of the CIRP period. The CIRP proceedings of FLFL is ...

NCLAT grants two weeks time for Supertech Township's settlement proposal

The Insolvency appellate tribunal NCLAT has granted two weeks more time to debt-ridden realty firm Supertech Township Projects suspended director Ram Kishore Arora to circulate the settlement proposal to both its lenders and home buyers. The National Company Law Appellate Tribunal (NCLAT) also suggested the realty firm facing insolvency proceedings to publish the settlement proposal on its website so that it can be accessed by all concerned stakeholders. "In view of the fact that Appellant is circulating a proposal for resolution of the project to the bank as well as to the homebuyers, we grant two weeks opportunity to the Appellant to complete the proposal and circulate it to the bank as well as to all the homebuyers," said a three-member NCLAT bench. The bench further said, "On the next date, we will consider whether the proposal submitted deserves to be accepted or not after hearing counsel for the lenders as well as the homebuyers who have filed applications in the appeal. Any .

IBBI amends rules to enhance creditor representation in insolvency process

The IBBI has amended the Insolvency Resolution Process for Corporate Persons norms to introduce significant changes to enhance creditor representation in the insolvency process. The board notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations 2024 on September 24. "The amendment regulations provide for the appointment of an interim representative who will act as a representative for a class of creditors during the period when the application for appointment of the authorised representative is under consideration of the adjudicating authority for approval," IBBI said in a release. The interim representative will have the same rights and responsibilities as a duly appointed authorised representative, particularly in the meetings of the committee of creditors. This move is aimed at facilitating the effective representation of creditors that are large in number, such as homebuyers, who often face delays

Byju's insolvency case: SC reserves verdict on plea challenging NCLAT order

The Supreme Court on Thursday reserved its verdict on a plea of a US firm against the NCLAT order stopping insolvency proceedings against ed-tech firm Byju's. A bench headed by Chief Justice D Y Chandrachud asked the insolvency resolution professional (IRP) to maintain status quo till the apex court delivers its judgement in the matter. The bench, also comprising Justices JB Pardiwala and Manoj Misra, considered the plea of US firm Glas Trust Company LLC and asked the IRP not to proceed with the committee of creditor's meeting to deal with the Byju's case. While hearing the matter on Wednesday, the top court had questioned the verdict of insolvency appellate tribunal NCLAT setting aside the insolvency proceedings against Byju's and approving its Rs 158.9 crore dues settlement with the BCCI. Observing that the National Company Law Appellate Tribunal (NCLAT) did not apply its mind while closing the insolvency proceedings against the ed-tech major, the bench had hinted that it may sen

SpiceJet resolves $16.7 mn dispute with Engine Lease Finance Corporation

Representatives from both SpiceJet and ELFC are set to formalise the agreement, effectively ending all legal proceedings between the two

IBBI chief asks insolvency professionals to be transparent to improve bids

IBBI Chairperson Ravi Mital on Tuesday asked insolvency professionals to be as transparent as possible during the resolution process as that will help in improving the bids and reduce haircuts. Speaking at a conference organised by the Indian Institute of Insolvency Professionals of ICAI (IIIPI) in the national capital, he said insolvency professionals and insolvency professional entities are the fulcrum of the insolvency system. While highlighting that the insolvency professionals need to be mindful of time and delays, Mital said, "be as transparent as possible during the bidding process. This will improve bids, reduce haircuts and improve image of the IBC ecosystem," according to a release issued by IIIPI. The Insolvency and Bankruptcy Board of India (IBBI) is a key institution in implementing the Insolvency and Bankruptcy Code (IBC).

Kulwant Singh takes charge as Executive Director of regulatory body IBBI

Kulwant Singh, a 1999 batch officer of the Indian Audit and Accounts Service, has taken charge as Executive Director of the Insolvency and Bankruptcy Board of India (IBBI), according to a release. Earlier, Singh has served as the Director General of Audit, East Coast Railway. "Kulwant Singh took charge as Executive Director, Insolvency and Bankruptcy Board of India (IBBI), on 11th September 2024," a release dated September 11 by the IBBI said. Singh has a graduate degree in law. He has completed more than 25 years in various capacities in the office of Comptroller & Auditor General of India (C&AG). He was also posted as Principal Director of Audit in Embassy of India, Washington DC and Director of Audit in High Commission of India, London. Last year in December, IBBI announced that Jithesh John has taken charge as an executive director. Prior to that, IBBI in October had announced that Sandip Garg has assumed charge as a Whole Time Member in the Bankruptcy Board. IBBI is a key

Byju's auditor BDO resigns after start of bankruptcy proceedings, firm says

Byju's defended its inability to provide the documents, saying in a statement the materials were requested from the firm's board, which has been suspended

Indian tax officials demand $101 million in Byju's insolvency process

The company is being run by court-appointed resolution professional Pankaj Srivastava who is inviting lenders, employees, vendors and government to claim unpaid dues

US lender Glas Trust not part of insolvency panel of Byju's: Report

Byju's was once a darling of global investors and valued at $22 billion in 2022, but is now facing insolvency due to its dispute with US lenders

Byju's foreign investors ask SC to hear their concerns in insolvency case

The four investors are the biggest foreign shareholders in Byju's with a combined stake of nearly 17 per cent

Ibbi guidelines for CoC need monitoring mechanism, say IBC experts

Earlier this month, the insolvency regulator introduced guidelines for CoC that steer the insolvency resolution process to stem the value erosion that occurs due to delays and bring more transparency

Rescued firms 2.5 times those liquidated in realty sector, shows IBBI data

IBC experts feel that despite the positive trend of more resolutions than liquidations in real estate insolvencies under the IBC, several challenges persist